A Brief History of Tax TimePosted in Announcements by CashCrate Dana
Friday, April 15th, 2016 is the tax filing deadline in the USA. It’s not a day to celebrate unless you have a refund coming. So where did income taxes come from?
Taxes have a long history in the USA and started before the American Colonies became an independent nation. “Taxation without representation” in the 1750’s and 1760’s led to the American Revolution. What started as a grievance with taxes ultimately led to America’s independence at the end of the Revolutionary War.
The new nation had fewer taxes in its early history. Tariffs were the largest source of federal income from the late 1790’s to the early 1900’s. A tariff is a tax on goods coming into or leaving a country (Merriam Webster).
In 1861, an income tax was established to help pay for the Civil War. This lasted for 10 years until it was repealed. In 1894, a flat rate Federal tax was enacted, but repealed the following year. In 1913, the 16th Amendment to the Constitution was ratified, making the income tax a part of American life. Further changes were made in the 1950’s and in 1998 with the IRS Restructuring and Reform Act.
Taxes have been around for a long time and tax time comes around every year. While it’s not fun to pay taxes, planning for them can make it less painful. If you work, make sure to have enough deducted from your wages. Contribute to your 401K plan if your company has one or put some money into an IRA. This can lower your taxable income. If you are self-employed or work as an independent contractor, put a little money aside every time you get paid. Consider speaking with a certified tax preparer if you have questions.
Making some extra money with sites like CashCrate may help as well. While you need to report all income you earn, it can help you pay taxes or any other expenses you have. We hope you’ll be getting a refund though and can use that extra money for something fun.